Samhi Hotels Maintains Buy Rating, Target Price Rs 264: Prabhudas Lilladher Analysts

Samhi Hotels Research Report

Summary

We have revised our estimates for Samhi Hotels, increasing our EBITDA projections by approximately 4% over the next two years. This upward revision is driven by the expected launch of RARE India, a luxury hospitality platform, which will generate new revenue streams and result in B2C commission income of Rs425mn and Rs556mn for FY27E and FY28E, respectively.

Key Developments

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The affiliation with Marriott is expected to boost occupancy rates by 35-45% and average room rates (ARR) to Rs25,000 across existing properties. Furthermore, the strong parentage of Marriott will facilitate the onboarding of new owners, resulting in additional listings on the platform. Following the acquisition of RARE India, we anticipate revenue and EBITDA compound annual growth rates (CAGR) of 15% and 23%, respectively, from FY26E to FY28E.

Recommendation

We maintain a BUY rating on Samhi Hotels with a target price of Rs264, based on an earnings multiple of 10.5x FY28E EBITDA (previously 12x).